Werner Enterprises Inc's Business Segments

We are a transportation and logistics company engaged primarily in transporting truckload shipments of general commodities in both interstate and intrastate commerce. We also provide logistics services through our Value Added Services (“VAS”) division. We believe we are one of the largest truckload carriers in the United States (based on total operating revenues), and our headquarters are located in Omaha, Nebraska, near the geographic center of our truckload service area. We were founded in 1956 by Clarence L. Werner, who started the business with one truck at the age of 19 and currently serves as our Chairman Emeritus. We were incorporated in the State of Nebraska in September 1982 and completed our initial public offering in June 1986 with a fleet of 632 trucks as of February 1986.

Werner Enterprises Inc. is a leading provider of transportation and logistics services, with a diverse array of offerings segmented primarily into Truckload and Value-Added Services (VAS). Below is an extensive overview of the companys segments, products, and services:

Truckload Segment

The Truckload segment of Werner Enterprises encompasses two primary units: One-Way Truckload and Specialized Services.

1. One-Way Truckload
This unit is further divided into three distinct operating fleets:

- Regional Fleet:
- This fleet focuses on short-haul operations within specific geographic regions of the United States.
- It predominantly transports a variety of consumer nondurable products and other commodities in truckload quantities using dry van trailers.
- This regional service is designed for frequent, reliable delivery tailored to local distribution needs.

- Medium-to-Long-Haul Van Fleet:
- This fleet extends the truckload van service over irregular routes that may cover longer distances.
- It provides a flexible approach to transportation, ensuring that products reach destinations outside of regional boundaries, accommodating various customer needs along diverse routes.

- Expedited Fleet:
- The expedited service utilizes driver teams to manage time-sensitive transportation requirements.
- This fleet is geared towards urgent deliveries and is capable of meeting strict deadlines, often for industries that cannot afford delays, such as perishable goods or just-in-time manufacturing.

Specialized Services
This unit focuses on converting truckload services to meet specific customer needs, which typically includes:

- Dedicated Services: Customized transport solutions dedicated to specific clients, often involving ongoing contracts with retail distribution centers or manufacturers.
- Specialized Trailers: The fleet includes specialized equipment for transporting products that require unique handling, such as:
- Flatbed Trailers: Used for oversized loads, construction materials, and other flat-loading items.
- Temperature-Controlled Trailers: Employed for transporting perishable goods, pharmaceuticals, and any cargo requiring specific temperature maintenance during transit.

The Truckload fleets operate throughout the contiguous 48 states of the U.S. leveraging both common and contract operating authority granted by the U.S. Department of Transportation (DOT) and individual state authorities. Beyond the U.S. Werner Enterprises has the authority to operate in several Canadian provinces and offer through-trailer services into and out of Mexico. The primary freight types transported include retail merchandise, consumer products, grocery items, and manufactured goods, focusing on consumer nondurable items due to their consistent shipping patterns and relatively stable volumes during economic fluctuations.

Value-Added Services (VAS) Segment

The VAS segment operates as a non-asset-based transportation and logistics provider, offering a broad spectrum of services that enhance the transportation experience without relying on owned transportation assets. This segment includes four major operating units:

1. Truck Brokerage (Brokerage)
- This unit utilizes a network of contracted carriers to fulfill customer shipments.
- It serves as an intermediary that connects shippers with available trucking capacity, enabling flexible shipping solutions across various markets.

Freight Management
- This unit provides comprehensive logistics management services, serving as a single-source solution for clients looking to streamline their logistics processes.
- It encompasses planning, execution, and monitoring of freight activities, helping clients to optimize transportation costs and improve overall efficiency.

Intermodal Services (Intermodal)
- This unit offers intermodal transportation solutions, combining rail services with truck transportation.
- By partnering with rail and drayage providers, this service presents an alternative to purely truck-based transportation, often resulting in cost savings and reduced environmental impact.

Werner Global Logistics (WGL)
- WGL manages international shipments from origin to destination, utilizing a multifaceted approach involving air, ocean, truck, and rail transportation modes.
- This global logistics service caters to clients with international shipping needs, ensuring that cargo is efficiently transported across borders.

In conclusion, Werner Enterprises Inc. stands as a major player in the transportation and logistics sector, with its extensive Truckload offerings and comprehensive Value-Added Services catering to a diverse range of customer needs across various industries. Whether through dedicated freight or innovative logistical management, the company is equipped to address the evolving demands of the marketplace.